Hacking consoles might provide an unfair advantage over non hacked consoles. A person could modify a game (like a wall hack, or god mode) and have an unfair advantage over non hacked systems. These type of mods could literally kill the market for consoles and games. The classic example of a game being killed over hacks would be Counter Strike for PC, with in a month the popular game was basically dead and was considered a cheating joke. Not even the PC version of cheat mod detection ‘Punkbuster’ could totally stop the cheating hacks.
At what point do game manufactures stop investing in new game technology because of low profits due to piracy and cheating? I would rather see awesome new games hit the market because of high profits due to DRM protections, than see cheaply produced (old graphics engine) games being over used due to low profits because of piracy and cheating.
The PC platform protections are easily defeated, making games for it is a risky investment. Because of the lack of protections and the high cost of enforcing it, game manufactures realized the massive profitability of consoles games because of DRM protections. It is easier to make games for a console, the consoles have a bigger user base, and the consoles provide a secure DRM protection that allows manufactures to protect their investments.
The only way a PC manufacture can afford to protect their investment of a game is to make it a ‘pay per month usage’. There has to be continued income for a manufacture to detect and enforce ‘a level play field’. The best example of a successful PC game using the ‘pay per month’ scheme would be Blizzard’s WOW. The other type of game protection enforcement is Punk Buster, but even that protection is easily defeated. Open Source games like Unreal depend on a large user base, and depend on the Servers to enforce fair play.
Damned if there is protections, and damned if there is not any!